Jordan Times
Tuesday, April 6, 2004
Local firms seen securing large portion of Iraqi tender
AMMAN (JT) — Jordanian companies are expected to
win the lion's share of an Iraqi tender, seen aimed at regional countries, to
supply Baghdad with 83,000 tonnes of soap and detergents at a total cost of
around $65 million.
According to knowledgeable sources at the public and private sectors, Jordan
will secure around 70 per cent of the tender, or $45-50 million of the total
amount, as many soap and detergent factories operate in the Kingdom.
Besides having the required expertise, the Jordanian companies enjoy the
experience in the Iraqi market.
As the tender terms require the merchandise to be supplied within the coming
three months, Jordanian firms stand better chances to win the tender in light of
the Kingdom's proximity to the war-ravaged Iraq.
Earlier in the year, Jordan's Industrial, Commercial and Agricultural Company (ICA)
won a couple of tenders, for JD7 million, floated by the World Food Programme.
ICA board Chairman Mohammad Abdul Rahman Abu Hassan said Jordan has always
enjoyed strategic relations with Iraq, describing the Iraqi tenders as a chance
for Jordanian companies to prove their potentials.
The potentials of Jordanian factories are equal to those of many international
companies operating in the field, he added.
Abu Hassan further explained that such a tender would provide an incentive for
other manufactures to enter the Iraqi market.
According to official sources, the government of Iraq will float other similar
tenders to import larger amounts of detergents later on this year.
In 2002, the country's exports to Iraq stood at JD312 million, accounting for 20
per cent of Jordan's exports to different world countries, Board Chairman of the
Jordan Chamber of Industry Hatem Halawani said.
Despite the decline in these exports during 2003 to the war-torn country, the
Iraqi market is once again gaining prominence, indicated Halawani.
The first month of this year saw JD31 million in exports to Iraq compared to
JD20 million during the same period last year.